Economics of pooling small local electricity prosumers—LCOE &amp; self-consumption

Kästel, Peter; Gilroy-Scott, Bryce

doi:10.1016/j.rser.2015.06.057

Cited by 73 publications

(40 citation statements)

References 65 publications

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“…They are strategic in developing markets [10,11] and the share of self-consumption becomes relevant in mature markets [12,13]. The next years will be characterized by an integration of PV installations in urban areas with the development of models of distributed generation increasing numbers of prosumers (consumers are also producers) [14,15]. The impacts of climate change, the increasing demand for energy and the diminishing fossil fuel resources have favoured the development of PV technologies in building applications [16].…”

Section: Introductionmentioning

confidence: 99%

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

2017

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New installed annual solar photovoltaic (PV) capacity was equal to 76.1 GW in 2016 (+49%), reaching the total of 305 GW around the world. PV sources are able to achieve a greater energy independence, to tackle the climate change and to promote economic opportunities. This work proposes an economic analysis based on well-known indicators: Net Present Value (NPV), Discounted Payback Time (DPBT) and Levelized Cost of Electricity (LCOE). Several case studies are evaluated for residential households. They are based on three critical variables: plant size (1, 2, 3, 4, 5 and 6 kW), levels of insolation (1350, 1450 and 1550 kWh/(m 2 ×y)) and share of self-consumption (30%, 40% and 50%). The profitability is verified in all case studies examined in this work. The role of self-consumption, that is the harmonization between demanded and produced energy, is strategic in a mature market to improve financial performance. A sensitivity analysis, based on both electricity purchase and sales prices (critical variables), confirms these positive results. The Reduction in the Emissions of Carbon Dioxide (ER cd ) signifies an environmental improvement when a PV system is used as an alternative to a mix of fossil fuels. Finally, a policy proposal is examined based on a fiscal deduction of 50% fixing the period of deduction equal to 5 years.

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Section: Introductionmentioning

confidence: 99%

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

2017

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“…The contributions mentioned in the paper agree with each other about the adoption of integrated photovoltaic battery systems; these contributions show a positive scenario and a clear economic advantage in adopting such systems if the storage technology is lithium-ion batteries. 9 International Journal of Photoenergy Germany confirms being one of the countries that firmly believes and invests in renewables and storage; a new programme for promoting the adoption of batteries started in March 2016 with a budget of 30 million euros. In the paper, studies of PV-BESs on the German FIT policy in commercial and residential applications were reported.…”

Section: Resultsmentioning

confidence: 99%

“…Citizens who have installed PV modules on roofs are an example of distributed power generation at residential level, but they are also carriers of important benefits for the environment and the rest of the electrical system. If properly managed, prosumers may contribute to improving the system stability and reduce overall losses [8,9]. On the other hand, the increasing electrification will put the reliability and stability of distribution grids under pressure.…”

Section: A Brief Reference To Sizing and Integration Of Photovoltaic mentioning

confidence: 99%

Recent Developments of Photovoltaics Integrated with Battery Storage Systems and Related Feed-In Tariff Policies: A Review

Bayod-Rújula

Burgio

Leonowicz

et al. 2017

International Journal of Photoenergy

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The paper presents a review of the recent developments of photovoltaics integrated with battery storage systems (PV-BESs) and related to feed-in tariff policies. The integrated photovoltaic battery systems are separately discussed in the regulatory context of Germany, Italy, Spain, United Kingdom, Australia, and Greece; the attention of this paper is focused on those integrated systems subject to incentivisation policies such as feed-in tariff. Most of the contributions reported in this paper consider already existing incentive schemes; the remaining part of the contributions proposes interesting and novel feed-in tariff schemes. All the contributions provide an important resource for carrying out further research on a new era of incentive policies in order to promote storage technologies and integrated photovoltaic battery systems in smart grids and smart cities. Recent incentive policies adopted in Germany, Italy, Spain, and Australia are also discussed.

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“…Several specific examples of optimizing renewable energy self-consumption are explained in references [35][36][37]. Moreover, Kästel and Gilroy-Scott [38] explain that, when grid parity is achieved, high self-consumption levels cannot only be a source of cheaper electricity but can also protect the consumer against energy price inflation. This is a factor to be taken into account in the Canary Islands' subsystems.…”

Section: The Self-consumption Regime and Renewable Energy Market In Imentioning

confidence: 99%

Special Regulation of Isolated Power Systems: The Canary Islands, Spain

Uche-Soria

Rodríguez‐Monroy

2018

Sustainability

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As non-mainland territories, the Canary Islands represent isolated electricity systems with their own peculiarities, derived mainly from their location. They are therefore subject to a special regulatory framework governing their electricity supply activities. These systems are less stable, in terms of both electrical energy generation and its transport infrastructures, because their site limitations require production to rely on a small number of plants, multiplying the problems that arise from potential grid or generator failures. This means that power generation costs in isolated groups of islands have been intrinsically higher than those on the mainland, above all in terms of fuel, given their greater dependence on fossil fuels. These costs also have a different structure, wherein variable costs prevail over fixed costs. The entry into force of Royal Decree 738/2015 defines a new method to determine the price of demand, generation, and additional costs. In addition, it creates a new virtual market for each isolated system (or subsystem), which takes into account the prices of the mainland, moving year, and generation costs. This implies a reduction in the volatility of the electricity market in these territories (lower risk) because part of the purchase price is already known. In this regard, the Canary Islands' subsystem that has experienced the greatest increase in generation costs is the island El Hierro, since, in systems where there is a wider diversification in the generation methods, there is also a greater variation in monthly prices-that is, greater uncertainty. The aim of this study is to analyze the operation of the Canary Islands' electricity market and the configuration of its dispatch pool. The wind-pumped hydropower station on El Hierro is described as a specific case study to illustrate the impact of the new regulatory framework.

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Economics of pooling small local electricity prosumers—LCOE & self-consumption

Cited by 73 publications

References 65 publications

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

Economic Analysis of a Photovoltaic System: A Resource for Residential Households

Recent Developments of Photovoltaics Integrated with Battery Storage Systems and Related Feed-In Tariff Policies: A Review

Special Regulation of Isolated Power Systems: The Canary Islands, Spain

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